The Inevitable Shift to Defined Contribution | The Institute for HealthCare Consumerism

The health care industry has been through the biggest change in history, with an impact some say is even greater than ERISA, Medicare and Medicaid. The current trends in the business and regulatory environment are leading to more creative ways to continue offering employee benefits. One of those methods has taken the industry by storm with the reinvention of the defined contribution plan.

This can be done in a variety of ways depending on how crafty the employer wants to get in their delivery. In most instances, defined contribution is being brought on with the implementation of a private exchange. This allows an employer to provide a comprehensive suite of products including several medical plan choices, CDHP options, life, disability, voluntary and non-traditional offerings like pet insurance, identity theft and more.